Cash consumption remains aggressive, with a free cash flow margin of -155.2% in 2026Q1 and a counterintuitive $3.0 million share repurchase despite deep operating losses.
| Cash from Operations | -13.62M | -14.45M | -5.27M | -6.51M | -12.08M | -5.14M | -1.85M | -4.31M | -1.57M |
| Operating CF Margin % | - | -617.13% | -19837.72% | -39954.99% | - | - | - | - | - |
| Operating CF Growth % | -454.13% | -174.05% | 18.97% | 46.15% | -135.15% | -177.42% | 57.01% | -173.64% | - |
| Net Income | -79.44M | -31.99M | -16.27M | -11.73M | -12.87M | -6.64M | -3.22M | -5.12M | -2.74M |
| Depreciation & Amortization | 1.37M | 1.42M | 667.06K | 679.84K | 22.41K | 11.8K | 9.06K | 8.11K | 3.29K |
| Stock-Based Compensation | 1.92M | 1.8M | 85.54K | 763.23K | 940.95K | 930.52K | 571.21K | 401.87K | 208.32K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -606.25K | 0 | 0 | 0 |
| Other Non-Cash Items | 71.32M | 23.34M | 10M | 2.68M | 4.14K | 804.65K | 438.08K | 62.81K | 812K |
| Working Capital Changes | -8.79M | -9.01M | 246.89K | 1.1M | -173.76K | 365.45K | 351.47K | 338.87K | 147.01K |
| Change in Receivables | 104.58K | 90.95K | -158.51K | 18.08K | -16.61K | -23.35K | 38.72K | -10.82K | -36.87K |
| Change in Inventory | 38 | 0 | -3.59K | -38.86K | 16.61K | 23.35K | 0 | 0 | 0 |
| Change in Payables | 231.57K | -1.31M | 641.28K | 834.15K | 75.55K | 662.17K | 257.97K | 367.2K | 264.19K |
| Cash from Investing | -113.3M | -115.51M | -1.87M | -225K | -640.01K | -1.01M | -171.57K | -1.3M | -31.04K |
| Capital Expenditures | -8.56M | -6.01M | -839.94K | 0 | -660.01K | -1.01M | -171.57K | -1.3M | -31.04K |
| CapEx % of Revenue | 186.85% | 256.9% | 3160.99% | - | - | - | - | - | - |
| Acquisitions | 4.76M | 0 | -356.08K | 0 | 0 | -744.19K | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -109.61M | 50K | -673.77K | 0 | 20K | 744.19K | 0 | 0 | 0 |
| Cash from Financing | 147.44M | 151.71M | 3.61M | 8.27M | 7.56M | 13.41M | 604.8K | 7.51M | 1.67M |
| Debt Issued (Net) | 9.67M | 11.04M | 918.53K | 7.47M | 9.95M | -134.07K | 31.42K | 372.63K | 0 |
| Equity Issued (Net) | 142.91M | 147.08M | 2.78M | 1.34M | 0 | 15.64M | 666.88K | 7.14M | 1.72M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -3.04M | -257.96K | 0 | 0 | 0 | 0 | 0 | -19.14K | 0 |
| Other Financing | -5.14M | -6.41M | -84.46K | -541.14K | -2.38M | -2.1M | -93.5K | 0 | -47.86K |
| Net Change in Cash | 20.55M | 21.65M | -3.39M | 1.61M | -5.51M | 7.12M | -1.51M | 2.08M | 79.02K |
| Free Cash Flow | -132.18M | -130.46M | -6.78M | -6.51M | -12.74M | -6.14M | -2.02M | -5.61M | -1.61M |
| FCF Margin % | -2887.02% | -5573.24% | -25534.34% | -39954.99% | - | - | - | - | - |
| FCF Growth % | -1808.99% | -1822.76% | -4.3% | 48.94% | -107.36% | -203.65% | 63.93% | -249.47% | - |
| FCF per Share | -16.26 | -94.04 | -199.90 | -6726.49 | -42276.68 | -24291.24 | -8360.68 | -23180.64 | -59697.60 |
| FCF Conversion (FCF/Net Income) | 1.66x | 0.44x | 0.32x | 0.55x | 0.94x | 0.77x | 0.57x | 0.84x | 0.57x |
| Interest Paid | -53.4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Unsustainable Operating Burn Rate
According to recent quarterly filings, the company's operating cash flow to net income ratio of 0.03 in 2026Q1 highlights a profound disconnect between accounting losses and actual cash usage, suggesting that accrual-based metrics provide little insight into the firm's underlying liquidity requirements or operational efficiency.
The extreme divergence between net income and operating cash flow indicates that the company's reported losses are heavily influenced by non-cash charges or accounting adjustments rather than pure operational cash outflows. Investors should monitor this gap closely, as it suggests that the business model remains in a developmental phase where traditional profitability metrics are currently irrelevant to assessing survival.
As reported in financial statements, the company's free cash flow margin reached -155.2% in 2026Q1, reflecting a persistent and deepening trend of cash consumption that significantly outpaces the company's ability to generate internal funding from its nascent revenue streams.
The consistent negative free cash flow trajectory underscores the company's reliance on external financing to sustain its current R&D and administrative overhead. This trend warrants further investigation into whether the company can achieve a pivot toward self-funding before its current cash reserves are exhausted by ongoing operational deficits.
Based on the provided data, the company's capital expenditure to revenue ratio hit 100.5% in 2026Q1, indicating that every dollar of revenue generated is being immediately reinvested into infrastructure or asset development, which may limit the company's ability to achieve near-term operational leverage.
The high capital intensity suggests that the company is still in a heavy investment phase, prioritizing the build-out of its sterilization technology over immediate cash flow generation. This level of spending appears to be a strategic choice to secure market positioning, though it leaves the firm vulnerable to any delays in commercializing its intellectual property.
Analysis of historical cash flow statements reveals that working capital changes have fluctuated significantly, with a $336,000 outflow in 2026Q1, suggesting that the company's management of receivables and payables is not yet optimized for a stable, recurring revenue business model.
The erratic nature of working capital movements may indicate inconsistent collection cycles or inventory build-ups associated with project-based revenue recognition. Such volatility complicates cash flow forecasting and suggests that the company's internal processes are still maturing alongside its commercial operations.
As evidenced by the $3.0 million share repurchase in 2026Q1, the company is deploying capital toward equity management despite deep operating losses, a move that appears counterintuitive given the urgent need to preserve liquidity for core research and development activities.
This capital allocation strategy may signal management's confidence in the long-term value of the firm's IP, yet it simultaneously accelerates the depletion of the cash runway. Investors should monitor whether such repurchases are intended to signal stability or if they represent an inefficient use of capital that could have been better directed toward scaling operations.
Quick answers to the most common questions about buying AVX stock.
Avax One Technology Ltd (AVX) generated $-14.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Avax One Technology Ltd (AVX) reported negative free cash flow of $130.5M in 2025, indicating capital requirements exceeded cash from operations.
Avax One Technology Ltd (AVX) spent $6.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Avax One Technology Ltd (AVX) spent $0.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.